Mitch Roschelle, managing director of Madison Ventures Plus, says that housing shortages are turning real estate agents into baristas.
The average US long-term mortgage interest rate rose this week to its highest level since mid-March, according to weekly data from mortgage buyer Freddie Mac.
The interest rate on the 30-year fixed-rate mortgage rose to 6.57% this week from 6.39% a week ago. A year ago it averaged 5.10%.
“The US economy is showing continued resilience, which combined with concerns about the debt ceiling has led to higher mortgage rates this week,” said Sam Khater, Freddie Mac’s chief economist.
A “For Sale” sign outside a home in Atlanta, Georgia, U.S., on Friday, February 17, 2023. (Dustin Chambers/Bloomberg via Getty Images)
Open house at a home for sale in Evesham Twp., NJ, February 26, 2023. (Fox News)
A For Sale sign is posted in front of a home in San Anselmo, California on March 22, 2023. (Justin Sullivan/Getty Images)
“Subdued affordability remains a concern for interested homebuyers, and homeowners seem unwilling to give up their low interest rates and put their home on the market. If this dilemma continues to limit supply, it could open up an opportunity for builders to help address the country’s housing shortage.” Khater continued.
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Meanwhile, the average interest rate on a 15-year fixed-rate mortgage rose to 5.97% this week from 5.75% a week ago. At this point last year, the 15-year fixed-rate mortgage averaged 4.31%.
The average interest rate on a 30-year home loan has risen for two straight weeks, reflecting the movement in the 10-year Treasury yield, which lenders use as a guide to pricing loans.
The 10-year government bond yield has been higher for most of the month, rising to 3.79% in Thursday afternoon trade. Two weeks ago it was 3.39%.
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The rise in bond yields comes as investors react to stronger-than-expected economic data and the potential impact of whether the Federal Reserve hikes rates again next month.
Bond traders are also considering the possibility that the US government could default on its debt as the White House and GOP leadership squabble over an agreement to raise the federal government’s debt ceiling to avoid an unprecedented default as soon as June 1.
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The Associated Press contributed to this story.